February 2024 Market Insights

Key insights from Jan. 2024 (compared to Jan. 2023)*

• New listings: 3,942 | +18%
• Median sales price: $350,000| +2.3%
• Closed sales: 2,186 | +3.2%
• Pending sales: 2,780 | +8%
• Days on market: 56 | -8.2%
• Inventory: 6,288| +1.7%
• Months’ supply: 1.7 | +21.4%

The highlights

• Mortgage rates continue to stabilize, giving homebuyers confidence to dip their toes into the market.
• While existing home sales were down 6.2% last month, inventory has increased and led to a 1.7 month’s supply of homes.
• Pending sales increased 8.3%; the largest jump since June 2020.
• The National Association of REALTORS® (NAR) predicts a 13% increase in existing home sales this year.

Home sales continue to be fairly stagnant with existing home sales down 6.2% from the same period last year. This has led to some good news for sellers, with the shortage of existing homes for sale leading to a 4.4% increase in home values across the nation year over year. For the Twin Cities area in particular, prices have grown at a slower rate of 2.3% with the median sales price currently at $350,000.

However, current metrics continue to point to a more favorable market as we continue into Q1 of 2024. Days on market has gone down 8.2% to 56 days, and months’ supply of homes has increased 21.4% to 1.7 months. Plus, pending sales increased 8.3% from December, which is the largest jump since June 2020.

Just this past month, new listings in the Twin Cities grew 18% with inventory levels rising 1.7% to 6,288 units. That, combined with new residential construction picking back up after a short decline (with an 8% month-over month and 4.4% year-over-year increase), will help create a more stable inventory.

What’s most encouraging is the decline in mortgage rates. As rates continue to lower from their highest point in fall 2023, more and more homeowners are starting to look at real estate opportunities, whether they are existing homeowners looking to sell and start fresh somewhere new, or first-time buyers looking to put down roots. In fact, the National Association of REALTORS® predicts a 13% increase in existing home sales from 2023 to 2024.

With mortgage rates stabilizing and listing activity continuing to pick up, sellers and buyers can be encouraged by trending metrics as we move further into 2024.

Economic check up

• Minneapolis-St. Paul area unemployment rate: 2.4% (as of December 2023)
• Average rates for 30-year conforming mortgage 6.77%**

Ready to help

We are here to help you confidently navigate your housing needs, now and always. Whether you are researching future options, or your circumstances require immediate action, reach out to an Edina Realty agent today for guidance.

*Data courtesy NorthstarMLS for the 16-County Twin Cities metro area for January 2023.

**Data sourced from Freddiemac.com for informational purposes only. Please contact your mortgage consultant for any questions related to specific loan transactions.

Where you live

Edina Realty serves locations across Minnesota and western Wisconsin. Here’s a look at the market indicators where you live. All % changes are year-over-year.

Alexandria Area

• New listings: 43 | +54%
• Avg. sales price: $275,973 | +16%
• Pending sales: 38 | +9%
• Days on market: 56 | +17%
• Inventory: 130 | +53%
• Months’ supply: 1.80 | +64%

Brainerd area

• New listings: 252 | +15%
• Avg. sales price: $300,666 | -9%
• Closed sales: 196 | +5%
• Days on market: 56 | No change
• Inventory: 781 | +34%
• Months’ supply: 2.10 | +50%

Lake Superior area

• New listings: 152 | +13%
• Avg. sales price: $290,422 | +12%
• Pending sales: 158 | +27%
• Days on market: 37 | +3%
• Inventory: 572 | +30%
• Months’ supply: 2.30 | +53%

Southeast Minnesota area

• New listings: 292 | -5%
• Avg. sales price: $294,562 | +3%
• Closed sales: 297 | +26%
• Days on market: 57 | +19%
• Inventory: 670 | +8%
• Months’ supply: 1.60 | +23%

St. Cloud area

• New listings: 98 | +26%
• Avg. sales price: $285,290 | +5%
• Pending sales: 88 | +60%
• Days on market: 50 | -2%
• Inventory: 168 | +12%
• Months’ supply: 1.50 | +25%

Mankato area

• New listings: 79 | -8%
• Avg. sales price: $223,278 | -6%
• Pending sales: 86 | No change
• Days on market: 91 | +6%
• Inventory: 286 | +23%
• Months’ supply: 2.00 | +33%

Northwestern Wisconsin area

• New listings: 242 | +4%
• Avg. sales price: $292,226 | +1%
• Closed sales: 200 | -3%
• Days on market: 87 | -1%
• Inventory: 916 | +7%
• Months’ supply: 2.80 | +40%

West Central Minnesota area

• New listings: 152 | +42%
• Avg. sales price: $202,663 | +29%
• Pending sales: 151 | +29%
• Days on market: 61 | +13%
• Inventory: 502 | +35%
• Months’ supply: 2.40 | +41%

Bemidji area

• New listings: 33 | +14%
• Median sales price: $195,450 | -30%
• Pending sales: 27 | -4%
• Inventory: 107 | +60%
• Months’ supply: 2.40 | +71%

Leech Lake and surrounding area

• New listings: 33 | +27%
• Median sales price: $279,950 | +50%
• Pending sales: 20 | No change
• Days on market: 26 | -49%
• Inventory: 104 | +65%
• Months’ supply: 2.50 | +92%

Little Falls area

• New listings: 9 | No change
• Median sales price: $178,600 | -6%
• Pending sales: 11 | -21%
• Days on market: 14 | -33%
• Inventory: 25 | +39%
• Months’ supply: 1.30 | +44%

Southwest Minnesota area

• New listings: 59 | +37%
• Median sales price: $137,500 | -2%
• Pending sales: 45 | -6%
• Days on market: 65 | +7%
• Months’ supply: 2.90 | +53%

Headwaters area

• New listings: 69 | +57%
• Median sales price: $240,000 | -9%
• Pending sales: 53 | +18%
• Days on market: 87 | +85%
• Months’ supply: 3.10 | +82%